What resources you should consult to learn about trading options and other assets

There has been no shortage of material written on trading financial assets, both academically as well as texts aimed at a wider audience. Therefore, the real problem then becomes figuring out which educational materials will be most effective in communicating the technical and theoretical trading points for the financial market. In this article, we will recommend which materials offer the most professional and useful information for private investors. We hope that it will come in handy and you will use it to build your success on the financial market.

Before we get into which learning methods and materials to choose, you need to work out what the specific results you are looking for are, meaning, what is your aim? Are you looking to gain an in-depth understanding of trading with various tools, acquire professional analytical skills and become an analyst? Or do you want to just grasp how to work with one specific trading tool, such as over-the-counter options or Forex. Every trading direction, tool or type of financial activity requires a tailored approach and specific literature. This is why when setting out to learn about trading you need to clearly set out your aims. It will help you more effectively and rationally find the vital information you are looking for. Another important point, if your goal is to find a strategy or form an analytical approach that will lead to profit on 100% of contracts, you should end your search now as there are no materials of the kind to find. Such systems are myths and don’t exist in reality! Don’t waste your time, as they are simply not out there. In order to become a professional trader, a lot of effort and, of course, research materials are required. So, let’s begin.

Professional traders would recommend not limiting your list to only include materials outlining highly technical approaches to market forecasting or ones describing specialized systems for analyzing asset rates. More readable materials will be very useful as well, such as texts describing how emotional and psychological factors and drivers can influence your success with financial trends. Now we will give you a selection of effective materials for gaining trading skills and furthering your growth as a professional trader.

Books for beginners

One of the easiest books for newcomers to trading to understand is Courtney Smith’s “How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life”. He, of course, isn’t a trading legend, but he has achieved very impressive results and has earned his place as a financial “shark”. Besides that, he is an active trader and investor heading up a large investment fund. As we are recommending this books for beginners, it can be summarized with the following words. It is to the point, free from any mind-numbingly boring, overly complex or useless passages. The main book details Smith’s practical work on the market. In it, you are introduced to trading systems based on stochastics, which are analytical approaches that can help you earn a stable income by utilizing the chart to define the market direction. Other than that, Smith focuses a lot of attention on money management in trading, as well as on the psychology of working on the financial market.

By the end, beginners receive a great foundation of basic professional trading skills. Moreover, Smith offers universal approaches to trading and analysis, so it is more or less irrelevant which trading tool you end up choosing.

Our second recommendation for beginners is a work by the successful trader and psychologist Brett Steenbarger. In his book “Enhancing Trader Performance: Proven Strategies From the Cutting Edge of Trading Psychology”, Steenbarger outlines several interesting approaches and methods of self-improvement and personal development for financial market participants. Pay close attention to the information given isn’t just for training purposes, but for professional and psychological growth. This book doesn’t lay out any trading systems or market analysis. You won’t find stimulating examples of the realities of working on the market. The entire book focuses on the psychological factors of trading and ways to increase your results as a trader on the financial market by studying how luck and greed factor in, a question that helps traders find their success. This book is very useful for gaining a basic technical understanding and improving your own psychological mentality as a trader.

Studying the Japanese Candlestick method

To become a professional you, of course, need to know all the finer points of working on the market. It is worth beginning at the start with construction of asset rate liquidity. The vast majority of traders today use the most effective and technically proven approach to price charts, Japanese Candlesticks. This mode of depicting liquidity is not just columns with varying directions of movement, it is a complete system of indicators with the ability to produce the largest amount of analytical information and market forecasts. That is why, without a guide to Japanese Candlesticks, you won’t be able to achieve your desired financial results. In this capacity, we recommend Steve Nison, the foremost leader of the art of candlestick charting as well as analytical systems based on Japanese Candlestick pattern analysis. His books, “Japanese Candlestick Charting Techniques” and “Beyond Candlestick Charting Techniques”, were true breakthroughs in specialized indicator liquidity analysis at the time and introduced the world to this amazing asset chart format. We recommend that private online investors closely study Nison’s first book, “Japanese Candlestick Charting Techniques”, as it goes as in-depth as possible into pattern analysis. The book is divided into three sections that help systemically breakdown candlestick charts:

1. The introduction is the first of the sections and it delves into the history of Japanese Candlesticks 2. The second section outlines all the famous models and rate candle combinations that can be applied as an effective approach to market forecasting. Here you are taught trend and counter-trend candle patterns, as well as systems based on their analysis. 3. In the third section, Nison informs readers of more advanced approaches to trading. In it, he explores combined systems, which not only include candle pattern identification but their combined indicators with chart lines and figures and also popular technical indicators. Meaning that, even with only one of this brilliant man’s books, traders receive a full arsenal of strategies for successful trading on the market.

Nison’s second book is aimed at more experienced investors. In it, Nison pays closer attention to medium-term market analysis. In particular, Nison purposes learning Renko charts, which are strategies based on patterns and Moving Averages, along with several specific highly effective systems.

Bill Williams and his “Trading Chaos”

We are nearing the classical literature on financial trading. Bill Williams is a technical analysis legend and you can’t call yourself a professional before reading his book “Trading Chaos”. Besides that, this book passes along a lot of handy knowledge that is loaded to the brim with useful points on practical market analysis. In his book, Williams proposes viewing the market as a chaotic system that is minimally subjected to statistic and mathematical norms but is at the same time based on logic and a cyclical nature that can be effectively forecasted. Williams tried to write as clear as possible, however, without a basic level of knowledge on the subject, the book can be slightly difficult to understand. That being said, if you study Williams’s assertions, you will have a better understanding of which processes influence the market during changes in the direction of movement, revolutionizing the way you think about the market!

Beyond tips on technical analysis and trading, this book lays out Williams’s 5 basic steps to becoming a trader. Making it so you can work out a trading system for yourself and discover many interesting tools for market analysis.

The trading experience of Alexander Elder

Alexander Elder is a financial trading legend who has written quite a few practical and useful books. What sets Elder apart is the liveliness of his writing, how interesting his interpretation of the process of analysis is and, of course, how practical his books are. You can evidently grasp how all Elder’s systems are logical and intuitive.

We recommend Elder’s following books as required reading:

● “Trading for a Living: Psychology, Trading Tactics, Money Management” – This book touches upon the leading factors of successful trading, be it psychological behavior, effective trading systems or professional risk management. This book will become an irreplaceable resource and point of reference on trading and market analysis for any trader

● “Come Into My Trading Room” – This book is a devoted resource for increasing trading performance. More specifically, Elder outlines the importance of setting out a trading plan and maintaining a journal. Therefore, he points out, traders create an effective foundation for analyzing mistakes and qualitatively increasing their effectiveness.

● “Financial Trading” – This is a technical book that details the most effective trading approaches, in particular, it introduces you to Elder’s famous triple screen trading system, that today has become practically legendary.

By studying his books, beginners will not only gain theoretical knowledge but practical skills for trading on the financial market as well. By acquiring these professional skills, investors can expect to quickly reach the top of the financial Olympus.

Trading trends, it is a true art

There is a common saying about the friendship between traders and trends that people aren’t relevant to the financial market. However, few are properly acquainted with the inner workings of its regime. We recommend Micheal Coval’s “Trend Following: How Great Traders Make Millions in Up Or Down Markets” for learning approaches to trading based on trends along with principles for constructing forecasts on exchange contracts with cyclical trends.

The book is the product of long and scrupulous research combined with analysis of Coval’s personal trading experience, as well as the performance of a team of professional traders and analysts. In the book, you will encounter an in-depth examination regarding the popularity of this type of trading, based on the technical inner-workings of trends, market psychology and crowds, and questions relating to the risks of trading trends.

In addition to other topics, the book clearly outlines technical materials that can be applied in practice. In particular, it lays out a large number of approaches to identifying concrete levels and points for forming contracts.

Coval’s book will substantially expand your ability to technically analyze the market and fosters professional growth.

Money management, the art of saving

For the vast majority of beginners, the first problem they are faced with when trading with financial assets is the disappointment at the lack of profit and the struggle of maintaining their trading capital. On this topic, there is no way to avoid effective approaches to money management. It is vital to maintaining a 70/30 record in order to achieve a positive balance between profiting and losing contracts. To do this, professional books on capital management can help, such as:

● Ryan Jones’s “The Trading Game: Playing by the Numbers to Make Millions”. Jones recommends thinking about effective money management through the prism of psychology. In the vast majority of cases, the inability to control emotions becomes the negative driving factor that leads to the eventual loss of capital. Furthermore, the attempt to piece together mathematical, logical and psychological trading factors to create effective conditions for money management is an interesting point.

● “The Mathematics of Money Management: Risk Analysis Techniques for Traders” by Ralph Vince. Vince suggests practical approaches to risk management to optimize trading success. The system set out in this book is very practical and can be widely applied in real trading.

These technical books can help any trader become a capital management guru. Without a doubt, it will increase your success as a trader.

In Conclusion

We have set out to offer you a selection of professional materials for gaining skills in various types of analysis and trading on the financial market. Of course, this list isn’t comprehensive, however, the books we’ve recommended cover the secrets of trends, the psychology of investors, effective risk management and practical strategies. Thus enabling you to gain professional skills and trading experience with an array of financial tools, as well as with over-the-counter contracts, cryptocurrencies, options and currency contracts.

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